Apple has a $477 billion market cap (the value of their equity) and $17 billion in long

Fantastic news! We've Found the answer you've been seeking!

Question:

Apple has a $477 billion market cap (the value of their equity) and $17 billion in long term debt (market value of their debt). Yahoo Finance estimates their Beta at 0.58 and the cost of their debt (required rate of return on debt) of 3%. If the market is expected to return 8%, the risk free rate is 1%, and the corporate tax rate is 30%, what is Apple's WACC?

Posted Date: Jun 06, 2024 05:13 PM

See More Questions

16-7. De qu manera los detallistas aumentan el inters y participacin de los consumidores en las ventas al por menor en lnea ?
Snake Golf Club, Corp., had the following stockholders equity at December 31, 2011: On June 30, 2012, Snake split its common stock 2 for 1. Requirements 1. Make the memorandum entry to record the...
% Hook Industries's capital structure consists solely of debt and common equity. It can issue debt at rd = 10%, and its common stock currently pays a $3.75 dividend per share (Do = $3.75). The...
Q4: Clarify the economic importance or the legal wisdom behind the following issues: (CLO 4 / 10 marks) The prescription period in civil transaction more than the commercial one. b. Some types of...
Briefly, discuss the use of survey research in exploratory, descriptive, explanatory, and evaluation studies. Using a criminal justice example select one type of research study and develop one...
Medical Helicopters In a study of helicopter usage and patient survival, results were obtained from 47,637 patients transported by helicopter and 111,874 patients transported by ground (based on data...
Woodland Hills Company reported income before taxes (pretax financial income) in its income statement of $60,000. Among the items included in the computation of pretax financial income were the...
cest Shouldice Hospital in Canada is widely known for one thing-hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the past two decades this...
The activation energy for the gas phase decomposition of isobutyl bromide is 211 kJ. (CH3)2CHCH2 Br (CH3)2C=CH2+ HBr The rate constant at 676 K is 5.73 x 10-4 s. The rate constant will be 0.00647 s...
A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $8and takes two machine hours to make and Product B has a...
Reconstructing transactions involving marketable securities. The financial state- ments of Zeff Corporation reveal the following information with respect to securities available for sale: During Year...
Effect of various methods of accounting for marketable equity securities. Infor- mation related to marketable equity securities of Callahan Corporation appears below. a. Assume that these securities...
Journal entries and consolidation work sheet entries for various methods of accounting for intercorporate investments. Rockwell Corpt)ration acquired, as long-term investments, shares of conunon...

Apple has a $477 billion market cap (the value of their equity) and $17 billion in long

Question:

Expert Answer:

Students also viewed these finance questions